Increasing India's Debt Burden..!? Big Warning..!

Sowmiya Sriram
Increasing India's Debt Burden..!? Big Warning..!
India's external debt ratio has increased significantly in the last year as compared to the previous year. Various countries of the world are trying to reduce it when they are experiencing a major crisis due to the debt crisis. At this stage, the data on India's credit report has been released. This has come as a warning to India. India's external debt ratio increased by 8.2% to $620.7 billion from $573.7 billion in the previous fiscal year (March 2021), according to a report by the Department of Economic Affairs, Ministry of Finance.
However, the debt to GDP ratio, which was 21.2% at the end of march 2021, decreased to 19.9% in march 2022. At the same foreign exchange reserve ratio, the external debt, which was 100.6% in the previous year, decreased to 97.85% in march 2022. Meanwhile, India's long-term debt stands at $499.1 billion, accounting for 80.4% of total debt. The same short-term debt stands at $121.7 billion. It accounts for a 19.6% share.The bulk of the total external debt is commercial debt. It is almost 90%.
In particular, the country's sovereign debt ratio increased by 17.1% to $130.7 billion. The same non-sovereign debt ratio increased by 6.1% from march 2021 to $490 billion.
 This is mostly a business loan. Apart from this it also includes nri deposits and short-term loans. nri deposits declined by 2% to $139 billion. The corresponding commercial credit ratio increased to $209.71 billion and short-term commercial credit increased to $117.4 billion.
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